The Differentiation Hierarchy

Just wanted to write a quick blurb about what I believe is the hierarchy of differentiation. Here it is in order from the biggest differentiator potential to the least:

  1. Find a problem

  2. Find a problem in the market that doesn’t have a solution.

  3. Find a problem in the market that has a solution(s) but has:

  1. Key features that are:

  2. Missing

  3. Not well integrated

  4. Not designed properly

  5. Secondary nice-to-have features are:

  6. Missing

  7. Not well integrated

  8. Not designed properly.

Note: The above factors in that all else is equal such as market size, pricing, marketing, distribution channels, etc. For example: You would obviously not want to build #1 above where there is no market for it and instead would be better off doing one of the #2 options.

© Bob Gorham Consulting 2019